Federal Regulators Target Debt Collection Companies With Aggressive Tactics

January 31, 2013

Federal regulators target debt collection companies with aggressive tactics

Harassing phone calls and threats of arrest are practices currently being used by aggressive debt collectors. Many of these tactics are not only rude, but illegal.

In an effort to refresh current laws and remind debt collection agencies that creditor harassment will not be tolerated, the Consumer Financial Protection Bureau, or CFPB, is launching a new set of rules to ensure debt collectors are not violating the Fair Debt Collection Practices Act. The regulations are aimed at holding these businesses accountable when they violate the law. Under these new regulations, the agencies will be required to report to the CFPB and allow CFPB officials to examine their collection practices.

The Fair debt Collections Practices Act provides a wide array of protections to consumers, including making it illegal for debt collection agencies to:
-Call at odd hours, particularly early in the morning or late at night
-Call and attempt to collect a debt at the consumer's place of employment
-Threaten to send a consumer to prison for not paying a debt
-Threaten to tell a consumer's neighbor or employer about the debt

Consumers victimized by debt collectors who abuse the law should be aware that these practices are illegal and remedies are available.

Remedies available for those struggling with debt collection agencies

According to the director of the CFPB, millions of consumers are struggling with debt collection. Collectors are contacting consumers over medical debt, student loans, home mortgages, credit card debt and past-due service bills. Unfortunately, some agents working for the collectors may take their efforts too far and violate the law.

There are a variety of options available to stop the harassment. The first step a consumer should take is to write a letter to the debt collector telling them to stop making contact. Under the Fair Debt Collections Act the collector must stop attempting to contact the consumer after receiving this letter.

After writing the letter, begin documenting any illegal behavior. Make notes of the time calls were received and any harassing language that was used. Then file a complaint with the Federal Trade Commission.

Another option to end the harassment that is often tied to debt collection practices is to file for bankruptcy. Bankruptcy is intended to offer a fresh start. When granted, the bankruptcy court issues an automatic stay. This order requires creditors to stop contacting the consumer.

If you are the victim of illegal collection calls, it is important to know that there are ways to stop this form of harassment. Contact an experienced creditor harassment attorney to discuss your situation and better ensure your legal rights are protected.

Article provided by Law Offices of Farnsworth Mortensen, PLLC
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